Skip to main content
9:00 pm
it's just better to be in front. the sonata turbo. from hyundai. what are you doing? work? work. cdw configured these lenovo thinkpad ultrabooks with intel core i7 processors. so, we can work anywhere. anywhere? sure - on the beach, in the woods, at the lake. what about on the green? let's not get ahead of ourselves. oh!!! good evening and with welcome to cnbc's coverage of the 2013 state of the union
9:01 pm
address. i'm carl quintanilla along with john harwood. you're looking live at the house chamber where in a few moments the president will give his annual address to a joint session of congress. tens of millions of americans watching on television and online. the president's speech will have a strong focus on creating jobs, bringing jobs back from overseas. he'll talk about reviving the nation's middle class and is expected to discuss investment in infrastructure and clean energy, all ostensibly without increasing the nation's deficit. beginning the republican response tonight as well from marco rubio. john, a lot of discussion tonight about the tone. the dow is at a fresh five-year high but a couple of wild cards in the form of north korea, foreign policy, a standoff in california tonight, the gun debate. >> the gun debate is one that's thrust itself into the nation's attention span, and the president's agenda, and this is going to only encourage that, but really the tone everybody is looking for is his tone vis-a-vis republicans. the inaugural, he had his elbows
9:02 pm
out a little bit. he was very newly confident just coming off that re-election. people will be watching to see how aggressive and confrontational he will be with them on the deficit, on the investment proposals he's going to make tonight which are modest but, nonetheless, are there. and on immigration, which is one way republicans are coming his way. >> larry kudlow, tonight you talked about the line between being assertive and confident and overreach. where is that tonight? >> that's a good question. a lot of people hope he will be more centrist including me so he can make a deal. there are a lot of deals out there that need to be made. somewhere in this, carl, i'm looking for a real pro-growth policy measure. maybe i'm wishing against all hope. i want to see some corporate tax reform. sometimes in the past the president has actually proposed that. i would love to see it tonight. i would love to hear it tonight because the economy needs growth. >> we're being told about maybe half a minute or is he until the president enters the room.
9:03 pm
larry, hopes tonight there will be fewer lines about wind subsidies and more lines about keystone, fewer lines about car intermissions and more about liquefied gas. >> the energy revolution has been a miracle in this country, one of the biggest contributors to growth. let us not cap it. i heard some rumors today about, yes, keystone but keystone in swapping for a carbon tax i think would be a perfectly dreadful idea. >> larry, i wouldn't hold your breath expecting a carbon tax in the president's speech today. >> i hope you are right. i sincerely hope you are right. >> this is said this is his last opportunity to go big in front of a big audience, unfiltered by the d.c. press, discussions of what clinton tried to do with education, what george w. bush tried to do with social security. will there be a hallmark measure like that tonight? >> the president has practically speaking a two-year window
9:04 pm
before the attention fully turns to the 2016 presidential race. this is probably the peak of his ability to move the country, move republicans in congress. the american people are behind him. his approval ratings are high. it depends on what go big means. if it means a set of initiatives he's proposing to try to build middle class jobs, build middle class incomes, that's big. if immigration reform comprehensively means going big, that's likely to happen. the gun debate is one where he's not likely to get what he's looking for. but eamon, you're surrounded by lawmakers as they're filing into the capitol. what are you seeing? >> reporter: that's right, john. this is sort of the spin room where members of congress will come after the speech to give their reaction. i can tell you a lot of members have been here throughout the evening giving their prespin spin. the spin room has been busy all evening. one thing to watch for with these members of congress, we saw the vice president come by
9:05 pm
just a few minutes ago. a lot of them are wearing green lapel pins. these are in honor of victims of gun violence, and that gives you a sense of some of the tone of what we're going to hear tonight. but a lot of the folks in this room are very focused on what the president will say, parsing every word of that. this room got very kwai whet they came through handing out these, the embargoed copies of the president's speech. all the heads went down as they looked to see what was in the president's speech. we'll have to wait for the president to deliver it. the reaction will be from right here. >> as he makes his way down the aisle in a few moments, it will recall some stories written in the past 24 hours about squatters, the congress people who try to get there early, get their five seconds of being seen with the president in front of a national audience. also we'll be talking -- >> more pathetic. >> we'll be talking more about the guests in the first lady's box. among them the ceo of apple, tim
9:06 pm
cook, who spoke at the goldman sachs investment conference in a highly anticipated interview with the goldman analyst, and some of the other guests point to other initiatives like the dream act. we'll see if apple gets him a line or two tonight. >> i'm for sensible immigration reform whether it's the brainiacs or the lower income people, i think it is pro growth. after my corporate tax reform, i rank immigration as the next best pro growth thing. we've just got to keep this economy going. right now it could be going in the wrong direction. certainly the last quarter was a lousy number. cbo says we're going to be at 1.5% for 2013. that is not good. and i think the president has to be cognizant of that. >> the immigration debate is going to lead to not congressman ryan but rather senator rubio giving the response tonight, john. expectations for him? bobby jindal the year before that. probably what is a well
9:07 pm
remembered speech for all the wrong reasons. >> if you're giving the response, it's dangerous to have high expectations. a very tough assignment. few people look good doing that. i was talking to david axelrod, the longtime strategist for the president, he said if you were marco rubio, i would not want at this point three years before the presidential campaign to be labelled the savior of the republican party and put out on national television there's only one place to go and that's down. bobby jindal discovered that, although he's worked his way back in. >> it points to at least on immigration, larry, a frenemy of the president, whose help he needs in furthering the immigration debate. >> from what i gather talking to rubio's people, they don't see this as a response to the president. they see this as communicating their own messages on economic growth, on free enterprise, on immigration, of course. be and of course already put out the spanish version of his speech for the spanish markets around the kcountry.
9:08 pm
i think rubio will take the high road. he is such a good communicator. it will be fascinating how he comes out. i agree with john, it's a tough assignment. i don't know. rubio is a very interesting guy right now in the driver's seat. >> we should point out, by the way, given all the economic anxieties 0 out there still, john, despite what the market's been doing so far it this year, how is going big in terms of a social agenda limited when you still have fires in the economy to put out? >> well, the social agenda is largely auditory. he has come out in favor of gay marriage. there is limit ed maneuvering room for the president to do much more than that. he's striking that note. he's pushing the gun issue. that is not likely to result in the assault weapons ban he's seeking although he may get something significant on high-capacity gun clips. but the economy is really the
9:09 pm
bottom line, the core of what the president is trying to do, the mission of his second term to try to revive the economy, get that growth going faster than 1% as larry said. raise middle class incomes and do something about longterm fiscal responsibility although he wants to do it in a different way than larry. >> the trick here it seems to me is to grow the pie larger, not try to shrink some pieces of the pie and enlarge others. and i've never been clear on how mr. obama sees the economy and whether he winunderstands that. if you're going to take away from some in order to give to others, i don't think that will be effective or received very well outside his base. >> a year ago it was the buffet rule. it was warren buffett's secretary in the first lady's box this year it's going to be the likes of a tim cook bringing mcintosh production back to the states. do you think we've edged off of that class warfare a about bit? >> i don't know.
9:10 pm
i want to hear what the president has to say. i have heard different things but have not read the speech. if he wants to go protectionist, for example, i think that will be poorly received, frankly, again, outside of his own union base and so forth. the tim cook thing is fascinating. i get that. if you bring manufacturing facilities home, that would be great. cut the corporate tax rate that would give them an incentive. regulate less that would give them an incentive to come home. >> certainly he will talk about incentives to try to bring manufacturing back home. i would not expect him to go hard protectionist of trade. so the president has been pursuing the transpacific partnership. >> but this whole idea of demonizing people that operate overseas troubles me, taxing them if they operate overseas troubles me. you just can't operate that way. i think really here is one, repatriate foreign capital, the
9:11 pm
profits that are overseas. so far as i know president obama doesn't want to help there. he may punish rather than incentivize. that's the kind of thing that could help business and trigger investment here at home. it's almost like free money. $2 trillion. bring it home. >> here is the sergeant of arms about to announce the president. >> mr. speaker, the president of the united states.
9:12 pm
>> the president begins his walk down the aisle flanked by patrick leahy, mitch mcconnell. you had a discussion about his inaugural and some of the confrontati confrontational nature. >> i sincerely hope it will not because he's got to do business with the gop. he's just got to. he expects to get anything done. so i can't answer that, but i sincerely hope the answer is it won't be as sharp. >> remember what has happened so far, larry. he has been able to do some business with the gop in the beginning of this year with the very approach that you're talking about. remember, they backed off brinksmanship on the debt limit. they are coming in his direction on immigration. and i think the strategy of the white house is that public opinion is behind him. he's going 0 to leverage public
9:13 pm
opinion. he's just won a majority in the election. and he's going to try to mobilize public opinion to make them come in his direction, and that's happened to some degree. not going to happen on everything and it's not going to happen -- may not happen as much as he wants to, but he has shown some signs of success so far this year. >> i think the fundamental issue here is going to be, first of all, the spending sequester. that's really number one. if he wants to make a deal on that, he shouldn't be attacking republicans today. he's just going to turn them off. regarding immigration, i agree, the gop is coming. by the way, i agree -- i'm a conservative who wants to see much more lenient and tolerant immigration laws. and i think pro growth, as i said before. the big question, will he be more centrist. >> you can see the president moving his way down the aisle. the schmoozing he's doing in a small way is part of the whole process of this event. he comes in, he's making direct contact with people. he's collecting a small amount
9:14 pm
of political capital as he walks in with eric cantor and pat leahy and embraces members of congress like sheila jackson-lee. she is for him but he will run into republicans and hope he can build up a little bit of personal capital with him. he's not so much for partying with members of congress or playing golf with them or hanging out with them on the weekend, but small things matter and he's going to try to make some of this matter. >> he's awfully close, too, to mcconnell, quoted as saying it's pretty clear the sequester will happen. does tonight -- >> first of all, i don't think it's so clear. i just notice he also shook hands with lindsey graham who has vowed to hold up his secretary of defense nominee, chuck hagel, and his cia director nominee john brennan. >> i interviewed mitch mcconnell tonight on our show. he was very definite. he said we are not going to have any revenue increases. and he also said no last-minute dpoeshg on the sequester. that was a tough thought.
9:15 pm
>> stylistically some interesting things to look for. it's a speech led by a new chief speechwriter and we haven't mentioned this point -- >> the president with sonia sotomayor, the first latina justice, elana kagan. >> it's includes ted nugent, texas congressman invited as his guest, and tony bennett, the guest of nancy pelosi. >> i was on the plane today with tony bennett, and it was a thrill. it was great. >> an illustration of how politics, political alliance has changed. the mrez shook hands with joe man chon, he will be on our program after this. joe manchian was shown firing a
9:16 pm
gun into the obama health agenda and now he is trying to work with the president. >> who has taken a marked turn in his view, you could argue that since newtown. we'll take a brief pause here as the president gives a copy of tonight's speech to the speaker. thank you! thank you. thank you. thank you.
9:17 pm
thank you. >> members of congress, i have the high privilege and distinct hohn 0or of present iing to you the president of the united states. >> thank you. thank you. thank you. thank you. thank you very much. thank you so much. thank you. thank you very much. thank you. mr. speaker, mr. vice president,
9:18 pm
members of congress, fellow americans, 51 years ago john f. kennedy declared to this chamber that the constitution makes us not rivals for power but partners for progress. [ applause ] it is my task, he said, to report the state of the union. to improve it is the task of us all. tonight, thanks to the grit and determination of the american people, there is much progress to report. after a decade of grinding war, our brave men and women in uniform are coming home. [ applause ]
9:19 pm
after years of grueling recession, our businesses have created over 6 million new jobs. we buy more american cars than we have in five years. unless and less foreign oil than we have in 20. [ applause ] our housing market is healing. our stock market is rebounding. and consumers, patients, and homeowners enjoy stronger protections than ever before. [ applause ] so together we have cleared away the rubble of crisis. we can say with renewed
9:20 pm
confidence that the state of our union is strong. [ applause ] but when we gather here knowing that there are millions of americans whose hard work and dedication have not yet been rewarded, our economy is adding jobs, but too many people still can't find full-time employment. corporate profits have skyrocketed to all-time highs. but for more than a decade, wages and incomes have barely budged. it is our generation's task then to reignite the true engine of america's economic growth, a rising, thriving middle class.
9:21 pm
it is -- it is our unfinished task to restore the basic bargain that built this country. the idea that if you work hard and meet your responsibilities, you can get ahead no matter where you come from, no matter what you look like or who you love. it is our unfinished task to make sure this government works on behalf of the many and not just the few. that it encourages free enterprise, rewards individual initiatives, and opens the doors of opportunity to every child across this great nation. the american people don't expect government to solve every problem. they don't expect those of us in this chamber to agree on every issue. but they do expect us to put the
9:22 pm
nation's interests first. [ applause ] they do expect us it to forge reasonable compromise where we can, for they know that america moves forward only when we do so together, and that the responsibility of improving this union remains the task of us all. our work must begin by making some basic decisions about our budget, decisions that will have a huge impact on the strength of our recovery. over the last few years both parties have worked together to reduce the deficit by more than
9:23 pm
$2.5 trillion. mostly through spending cuts, but also by raising tax rates on the wealthiest 1% of americans. as a result we are more than halfway towards the goal of $4 trillion in deficit reduction to stabilize our finances. now we need to finish the job. the question is how? in 2011 congress passed a law saying that if both parties couldn't agree on a plan to reach our deficit goal, about a trillion dollars worth of budget cuts would automatically go into effect this year. these sudden, harsh, arbitrary cuts would jeopardize our military readiness, would devastate priorities like education and energy and medical research. they would certainly slow our recovery and cost us hundreds of thousands of jobs.
9:24 pm
that's why democrats, republicans, business leaders, and economists have already said that these cuts known here in washington as the sequester are a really bad idea. now some in congress have proposed preventing only the defense cuts. by making even bigger cuts to things like education and job training. medicare and social security benefits. that idea is even worse. [ applause ] yes, the biggest driver of our lo long-term debt is the rising cost of health care for an aging population. and those of us who care deeply about programs like medicare
9:25 pm
must imbrace the need for modest reforms. otherwise our retirement programs will crowd out the investments we need for our children and jeopardize the promise of a secure retirement for future generations. but we can't ask senior citizens and working families to shoulder the entire burden of deficit reduction while asking nothing more from the wealthiest and the most powerful. [ applause ] we won't grow the middle class simply by shifting the cost of health care or college on to families that are already struggling or by forcing communities to lay off more teachers and more cops and more firefighters. most americans, democrats, republicans and independents, understand that we can't just cut our way to prosperity. they know the broad based economic growth requires a balanced approach to deficit reduction. with spending cuts and revenue
9:26 pm
and with everybody doing their fair share. and that's the approach i offer tonight. on medicare i'm prepared to enact reforms that will achieve the same amount of health care savings by the beginning of the next decade as the reforms proposed by the bipartisan simpson bowles commission. already the affordable care act is helping to slow the growth of health care costs. and the reforms i'm proposing go even further. we'll reduce taxpayer subsidies to prescription drug companies and ask more from the wealthiest seniors. we'll bring down costs by changing the way our government pays for medicare because our medical bills shouldn't be based on the number of tests ordered or days spent in the hospital. it should be based on the quality of care our seniors receive.
9:27 pm
and i am open to additional reforms from both parties so long as they don't violate the guarantee of the secure retirement. our government shouldn't make promises we cannot keep. but we must keep the promises already made. [ applause ] >> to hit the rest of our deficit reduction target, we should do what leaders in both parties have already suggested and save hundreds of billions of dollars by getting rid of tax loopholes and deductions for the well off and the well connected. oof all, why would we choose to make deeper cuts to education and medicare just to protect special interest tax breaks?
9:28 pm
how is that fair? why isn't deficit reduction is a big emergency justifying making cuts in social security benefits but not closing some loopholes? how does that promote growth? [ applause ] now is our best chance for bipartisan comprehensive tax reform that encourages job creation and helps bring down the deficit. [ applause ] we can get this done. the american people deserve a tax code that helps small businesses spend less time filling out complicated forms and more time expanding and hiring. the tax code that ensures billing errors with high powered accountants can't pay a lower rate than their hard working secretaries.
9:29 pm
a tax code that lowers innoce incentives to move jobs overseas and lowers tax rates for businesses and manufacturers that are creating jobs right here in the united states of america. that's what tax reform can deliver. that's what we can do together. i realize the tax reform and entitlement reform will not be ea easy. politics will be hard for both sides. none of us will get 100% of what we want. but the alternative will cost us jobs, hurt our economy, visit hardship on millions of hard working americans. so let's set party interests aside and work to pass a budget that replaces reckless cuts with smart savings and wise investments in our future and
9:30 pm
let's do it without the brinksmanship that scares off investors. the greatest nation on earth -- the greatest nation on earth cannot keep conducting its business by drifting from one manufactured crisis to the next. we can't do it. let's agree. let's agree right here right now to keep the people's government open and pay our bills on time and always uphold the full faith and credit of the united states of america. the american people have worked too hard for too long rebuilding from one crisis to see their elected officials cause another. [ applause ]
9:31 pm
now -- most of us agree that a plan to reduce the deficit must be part of our agenda. and let's be clear, deficit reduction alone is not an economic plan. [ applause ] a growing economy that creates good, middle-class jobs, that must be the north star that guides our efforts. every day we should ask ourselves three questions as a nation. how do we attract more jobs to our shores? how do we equip our people with the skills they need to get those jobs? and how do we make sure the hard work leads to a decent labor? a year and a half ago i put forward an american jobs that was said to create 1 million new
9:32 pm
jobs and i thank the last congress for passing some of that agenda. i urge this congress to pass the rest. [ applause ] but tonight i'll lay out additional proposals that are fully paid for and fully cons t consistent with the budget framework both parties agreed to just 18 months ago. let me repeat, nothing i'm proposing tonight should increase our deficit by a single dime. it is not a bigger government we need but a smarter government that sets priorities and invests in broad-based growth. that's what we should be looking for. our first priority is making america a magnet for new jobs in manufacturing. after shedding jobs for more than ten years, our manufacturers have added about 500,000 jobs over the past
9:33 pm
three. c caterpillar is bringing jobs back from japan. ford is bringing jobs back from mexico. and this year apple will start making macs in america again. there are things we can do right now to accelerate this trend. last year we created our first manufacturing innovationyoungst now a state-of-the-art lab where new workers are mastering the 3d printing to revolutionize the way we make almost everything. there's no reason this can't happen in other towns. so tonight i'm announcing the launch of three more of these manufacturing homes where businesses will partner with the department of defense and energy to turn regions left behind by globalization into global centers of high-tech jobs. and i ask this congress to help create a network of 15 of these hubs and guarantee that the next
9:34 pm
revolution in manufacturing is made right here in america. we can get that done. now if we want to make the best products, we also have to invest in the best ideas. every dollar we invested to map the hugh unanimoman genome, tod sciences are mapping the human brain to unlock the answers to alzheimer's, developing drugs to regenerate damaged organs, devising new materials to make batteries ten times more powerful. now is not the time to gut these job creating investments. now is the time to reach a level of research and development not seen since the height of the
9:35 pm
space race. we need to make those investments. today no area holds more promise than our investments in american energy. after years of talking about it, we're finally poised to control our own energy future. we produce more oil at home than we have in 15 years. we have doubled the distance our cars will go on a gallon of gas and the amount of renewable energy we generate from sources like wind and solar with tens of thousands of good american jobs to show for it. we produce more natural gas than ever before and nearly everyone's energy bill is lower because of it. and over the last four years our emissions have actually fallen.
9:36 pm
but for the sake of our children and our future, we must do more to combat climate change. now it's true that no single event makes a trend. but the fact is the 12 hottest years on record have all come in the last 15. heat waves, droughts, wildfires, floods, all are now more frequent and more intense. we can choose to believe that superstorm sandy and the most severe drought in decades and the worst wildfires some states have ever seen were just a coincidence, or we can choose to believe in the overwhelming
9:37 pm
judgment of science and act before it's too late. [ applause ] now the good news is we can make meaningful progress on this issue while driving strong economic growth. i urge this congress to get together, pursue a bipartisan market based solution to climate change like the one john mccain and joe lieberman worked on together a few years ago. but if congress won't act soon to protect future generations, i will. i will direct -- [ applause ] i will direct my cabinet to come up with executive actions we can take now and in the future to reduce pollution, prepare our communities for the consequences of climate change, and speed the transition to more sustainable sources of energy. four years ago other countries dominated the clean energy market and the jobs that came with it.
9:38 pm
we began to change that. last year wind energy added nearly half of all new power capacity in america. so let's generate even more. solar energy gets cheap er by te year. let's drive down costs even further. as long as countries like china keep going all in on clean energy, so must we. in the meantime, the natural gas boom has led to cleaner power and greater energy independence. we need to encourage that. that's why my administration will keep cutting red tape and speeding up new oil and gas permits. that's got to be part of an all of the above plan. but i also want to work with this congress to encourage the research and technology that helps natural gas burn even cleaner and protects our air and our water. in fact, much of our newfound energy is drawn from lands and waters that we, the public, hold together. so tonight i propose we use some of our oil and gas revenues to fund an energy security trust
9:39 pm
that will drive new research and technology to shift our cars and trucks off oil for good. if a nonpartisan coalition of ceos and retired generals and admirals can get behind this idea, then so can we. let's take their advice and free our families and businesses from the painful spikes in gas prices we put up with for far too long. i am issuing a new goal for america. let's cut in half the energy wasted by our homes and businesses over the next 20 years. we'll work with the states to do it. those states with the best ideas to create jobs and lower energy bills by constructing more efficient buildings will receive federal support to help make that happen. america's energy sector is just one part of an aging infrastructure badly in need of repair. ask any ceo where they'd rather
9:40 pm
locate and hire, a country with deteriorating roads, bridges, or one with high-speed rail and internet. high-tech schools, self-healing power grids. the ceo of siemens america, a company that brought hundreds of new jobs to north carolina, said that if we upgrade our infrastructure, they'll bring even more jobs. and that's the attitude of a lot of companies around the world. i know you want these job creating projects in your districts. i've seen all those ribbon cuttings. so, tonight, i propose a fix it first program to put people to work as soon as possible on our most urgent repairs like the nearly 70,000 structurally deficient bridges across the country.
9:41 pm
and to make sure taxpayers don't shoulder the whole burden, i'm proposing a partnership to rebuild america that attracts private capital to upgrade what our businesses need most -- modern ports to move our goods, modern pipelines to withstand the storm, modern schools worthy of our children. let's prove there's no better place to do business than here in the united states of america, and let's start right away. we can get this done. and part of our rebuilding effort must also involve our housing sector. the good news is our housing market is finally healing from the collapse of 2007. home prices are rising at the fastest pace in six years. home purchases are up nearly 50%. and construction is expanding again. but even with mortgage rates near a 50-year low, too many
9:42 pm
families with solid credit who want to buy a home are being rejected. too many families who never missed a payment and want to refinance are being told no. that's holding our entire economy back. we need to fix it. right now there's a bill in this congress that would give every responsible homeowner in america the chance to save $3,000 a year by refinancing at today's rates. democrats and republicans have supported it before. so what are we waiting for? take a vote and send mae that bill. why would we be against that? why can would that be a partisan issue? helping folks refinance? right now overlapping regulations keep responsible
9:43 pm
young families from buying their first home. what's holding us back? let's streamline the process and help our economy grow. that's initiatives in manufacturing, energy, infrastructure, housing, all these things will help entrepreneurs and small business owners expand and create new jobs. but none of them will matter unless we also equip our citizens with the skills and training to fill those jobs. and that has to start at the earliest possible moment. study after study shows the sooner a child begins learning, the better he or she does down the road. but today fewer than three in ten 4-year-olds are enrolled in a high-quality preschool program. most middle class parents can't
9:44 pm
afford several hundred bucks a week for preschool. and for poor kids, we need help the most. this can shatter them for the rest of their lives. tonight i propose working with states to make high-quality preschool available to every single child in america. that's something we should be able to do. every dollar we invest in high quality early childhood education can save more than $7 later on by boosting graduation rates, reducing teen pregnancy, even reducing violent crime. in states that make it a priority to educate our youngest children, like georgia or
9:45 pm
oklahoma, studies show students grow up more likely to read and do math at grade level, graduate high school, hold a job, form more stable families of their own. we know this works. so let's do what works and make sure none of our children start the race of life already behind. let's give our kids that chance. let's also make sure that a high school diploma puts our kids on a path to a good job. right now countries like germany focus on graduating their high school students with the equivalent of a technical degree from one of our community colleges. so those german kids are ready for a job when they graduate high school. they've been trained for the jobs that are there. now schools like p-tech in
9:46 pm
brooklyn, collaboration of public schools and city university of new york and ibm, students will graduate with a high school diploma and an associates degree in computers or engineering. we need to give every american students opportunities like this. and four years ago -- four years ago we started race to the top, the competition that convinced almost every state to develop smarter curriculum and higher standards, all for about 1% of what we spent on education each year. tonight i'm announcing a new challenge to redesign america's high schools so they better equip graduates for the demands of a high-tech economy. and we'll reward schools that develop new partnerships with colleges and employers and create classes that focus on science, technology, engineering, and math. the skills today's employers are looking for to fill the jobs that are there right now and will be there in the future.
9:47 pm
now even with better high schools, most young people will need some higher education. it's a simple fact. the more education you've got, the more likely you are to have a good job and work your way into the middle class. today's skyrocketing costs place too many young people out of a higher education or saddle them with unsustainable debt. through tax credits, grants, and better loans, we've made college more affordable for millions of students and families over the last few years. the taxpayers can't keep on subsidizing higher and higher and higher costs for higher education. colleges must do their part to keep costs down and it's our job to make sure that they do. so tonight i ask congress to change the higher education act
9:48 pm
so that affordability and value are included in determining which colleges receive certain types of federal aid. [ applause ] and tomorrow my administration will release a new college scorecard for parents and students to use to compare schools based on a simple criteria. where you can get the most bang for your educational buck s. our citizens have to have access to the training that today's jobs require. we also have to make sure that america remains a place where everyone is willing to work, everybody is willing to work hard, has a chance to get ahead. our economy is stronger when we harness the talents and ingenuity of striving, hopeful immigrants. and right now leaders from the business, labor, law enforcement, faith communities,, they all agree that the time has
9:49 pm
come to pass comprehensive immigration reform. now is the time to do it. now is the time to get it done. now is the time to get it done. real reform means stronger border security, and we can build on the progress my administration has already made, putting more boots on the southern border than at any time in our history and reducing illegal crossings to the lowest levels in 40 years. real reform means establishing a responsible pathway to earned citizenship, a path that includes passing a background check, paying taxes in a meaningful penalty, learning english and going to the back of the line behind the folks trying to come here legally.
9:50 pm
and real reform means fixing the legal immigration system, to cut waiting periods and attract the high highly skilled entrepreneurs and engineers that will help create jobs and grow our economy. in other words, we know what needs to be done. and as we speak bipartisan groups in both chambers are working diligently to draft a bill and i applaud their efforts. let's get this done. send me a comprehensive immigration reform bill in the next few months and i will sign it right away, and america will be better for it. let's get it done. let's get it done.
9:51 pm
we can't stop there. we know our economy is stronger when our wives, our mothers, our daughters can live their lives free from discrimination in the work place and free from the fear of domestic violence. today the senate passed the violence against women's act that joe biden originally wrote almost 20 years ago and i now urge the house to do the same. good job, joe. and i ask this congress to declare that women should earn a living equal to their efforts and finally pass the paycheck fairness act this year.
9:52 pm
we know our economy is stronger when we reward an honest day's work with honest wages, but today a full-time worker making the minimum wage earns $14,500 a year. even with the tax relief we put in place. a family with two kids that earns the minimum wage still lives below the poverty line. that's wrong. that's why since the last time this congress raised the minimum wage 19 states have chosen to bump theirs even higher. tonight, let's declare that in the wealthiest nation on earth, no one who works full time should have to live in poverty and raise the federal minimum wage to $9 an hour. we should be able to get that done. this single step would raise the
9:53 pm
incomes of millions of working families. it could mean the difference between groceries or the food bank, rent or eviction, scraping by or finally getting ahead. for businesses across the country, it would mean customers with more money in their pockets. a whole lot of folks out there would probably need less help from government. in fact, working folks shouldn't have to wait year after year for the minimum wage to go up while ceo pay has never been higher. so here is an idea that governor romney and i actually agreed on last year. let's tie the minimum wage to the cost of living so that it finally becomes a wage you can live on. tonight let's also recognize that there are communities in this country where no matter how hard you work it is virtually
9:54 pm
impossible to get ahead. factories decimated from years of packing up. inhe is capable pockets of poverty. urban and rural. young adults still fighting for their first job. america is not a place where the chance of birth or sick should decide our destiny. and that's why we need to build new ladders of opportunity in the middle class for all no are willing to climb them. let's offer incentives to companies that higher americans who got what it takes to fill that job opening but have been out of work so long no one will give them a chance anymore. let's put people back to work rebuilding, making homes and run down neighborhoods. and this year my administration will begin to partner with 20 of the hardest hit towns in america to get these communities back on their feet. we'll work with local leaders to target resources and public safety and education and housing. we'll give new taxes to
9:55 pm
companies that hire and invest, and we'll work to strengthen families by removing the financial deterrence to marriage for low income couples and do more to encourage fatherhood. because what makes you a man isn't the ability to conceive a child, it's having the courage to raise one. we want to encourage that. we want to help that. stronger families, stronger communities, stronger america. it is this kind of prosperity broad, shared, built on a thriving middle class that has always been the source of our progress at home. it's also the foundation of our power and influence thought the world. tonight we stand united in
9:56 pm
saluting the troops and civilians who sacrifice every day to protect us. because of them we can say that america will complete its mission in afghanistan and achieve our objective of defeating the core of al qaeda. already we have brought home 33,000 of our brave service men and women. this spring our forces will move into a support role while afghan security forces take the lead. tonight i can announce that over the next year another 34,000 american troops had will come home from afghanistan. this drawdown will continue, and by the end of next year our war in afghanistan will be over.
9:57 pm
beyond 2014 america's commitment to a unified and sovereign afghanistan will endure. but the nature of our commitment will change. we're negotiating an agreement with the afghan government that focuses on two missions. training and equipping afghan forces so that the country does not again slip into chaos, and counterterrorism efforts that allows us to pursue the remnants of al qaeda and their affiliates. today the organization that attacked us on 9/11 is a shadow of its former self. it's true. different al qaeda affiliates and extremist groups have
9:58 pm
emerged from the arabian peninsula to africa. the threat these groups pose is evolved. but to meet this threat, we don't need to send tens of thousands of our sons and daughters abroad or occupy other nations. instead, we'll need to help countries like yemen and libya and somalia provide for their own security and help allies who take the fight to terrorists as we have in mali. and where necessary through a range of capabilities we will continue to take direct action against those terrorists who pose the gravest tvestt to americans. now, as we do, we must enlist our values in the fight. that's why my administration has worked tirelessly to forge a durable, legal, and policy framework to guide our
9:59 pm
counterterrorism efforts. throughout we have kept congress fully informed of our efforts. i recognize that in our democracy no one should just take my word for it that we're doing things the right way. so in the months ahead i will continue to engage congress to ensure not only targeting detention and prosecution of terrorists remains consistent with our laws and system of checks and balances, but that our efforts are even more transparent to the american people and to the world. of course -- [ applause ] our challenges don't end with al qaeda. america will continue to lead the effort to prevent the spread of the world's most dangerous weapons. the regime in north korea must know they will only achieve security and prosperity by meeting their international obligations. provocations we saw last night will only further isolate as we stand by our allies, strengthen
10:00 pm
our own missile defense and lead the world in taking firm action in response to these threats. likewise the leaders of iran must realize the time is now because a coalition stands united in demanding they meet their obligations and we will do what is necessary to prevent them from getting a nuclear weapon. at the same time we'll engage russia to seek further reductions in our nuclear arsenals and continue leading the global effort to secure nuclear materials that could fall into the wrong hands. because our ability to influence others depends on our willing ness to lead and meet our obligations. america must also face the rapidly growing threat from cyber attacks.
10:01 pm
now, we know hackers steal people's identities and infiltrate private e-mails. we know foreign countries and companies swipe our corporate secrets. now our enemies are seeking the ability to sabotage our financial institutions, our air traffic control systems. we cannot look back years from now and wonder why we did nothing in the face of real threats to our security and 0 our economy. that's why earlier today i signed a new executive order that will strengthen defenses by increasing information sharing and developing standards to protect our national security, our jobs and our privacy. but now congress must act as well. by passing legislation to give our government a greater capacity to secure our networks and deter attacks.
10:02 pm
this is something we should be able to get done on a bipartisan basis. now, even as we protect our people, we should remember that today's world presents not just dangers, not just threats. it presents opportunities. to boost american exports, support american jobs. and level the playing field in the growing markets of asia. we intend to complete negotiations on a transpacific partnership. and tonight i'm announcing we will announce talks on a transatlantic trade investment partnership with the european union. because trade that is fair and free across the atlantic supports millions of good-paying american jobs. we also know that progress in the most impoverished parts of
10:03 pm
our world enriches us all. not only because it creates new markets, more stable order in certain regions of the world but also because it's the right thing to do. in many places, people live on little more than $1 a day. so the united states will join with our allies to eradicate such extreme poverty in the next two decades by connecting more people in the global economy, but empowering women, by giving our young and brightest minds new opportunities to serve. and helping communities to feed and power and educate themselves. by saving the world's children from preventible deaths, and by realizing the promise of an aids-free generation, which is within our reach. you see, america must remain a
10:04 pm
beacon to all who seek freedom during this period of historic change. i saw the power of hope last year in rangun in ber ma when an aung san suh chi welcomed. when they said there is justice and law in the united states. i want our country to be like that. and in defense of freedom, we'll remain the anchor of strong alliances from the americas to africa, from europe to asia. in the middle east, we will stand with citizens as they demand their universal rights and support stable transitions to democracy. we know the process will be messy.
10:05 pm
and we cannot presume to dictate the course of change in countries like egypt, but we can and will insist on respect for the fundamental rights of all people. we'll keep the pressure on a syrian regime that has murdered its own people. and support opposition leaders that respect the rights of every syrian. and we will stand steadfast with israel in pursuit of security and a lasting peace. these are the messages i'll deliver when i travel to the middle east next month. and all this work depends on the courage and sacrifice of those who serve in dangerous places at great personal risk. our diplomats, our intelligence
10:06 pm
officers, and the men and women of the united states armed forces. as long as i'm commander in chief, we will do whatever we must to protect those who serve their country abroad, and we will maintain the best military the world has ever known. we'll invest in new capabilities, even as we reduce waste and more time spending. we will ensure equal treatment for all service members, and equal benefits for their families, gay and straight. we will draw upon the courage and skills of our sisters and daughters and moms, because
10:07 pm
women have proven under fire that they are ready for combat. we will keep faith with our veterans, investing in world-class care, including mental health care for our wounded warriors. supporting our military families, giving our veterans the benefits and education and job opportunities they have earned, and i want to thank my wife michelle and dr. jill biden for their continued dedication to serving our military families as well as they have served us. thank you, honey. thank you, jill. defending our freedom, though,
10:08 pm
is not just the job of our military alone. we must all do our part to make sure our god-given rights are protected here at home. that includes one of the most fundamental rights of a democracy. the right to vote. now -- when any american, no matter where they live or what their party, are denied that right, because they can't afford to wait for five or six or seven hours just to cast their ballot, we are betraying our ideals. so tonight i'm announcing a
10:09 pm
nonpartisan commission to improve the voting experience in america, and it definitely needs improvement. i'm asking two long-time experts in the field who, by the way, recently served as the top attorneys or for my campaign and for governor romney's campaign, to lead it. we can fix this. and we will. the american people demand it, and so does our democracy. of course, what i've said tonight matters little. if we don't come together to protect our most precious resource. our children. it has been two months since newtown. i know this is not the first time this country has debated
10:10 pm
how to reduce gun violence. but this time it's different. overwhelming majorities of americans, americans who believe in the second amendment, have come together around common sense reform. like background checks that will make it harder for criminals to get their hands on a gun. senators -- senators of both parties are working together on tough new laws to prevent anyone from buying guns for resale to criminals. police chiefs are asking our help to get weapons of war and massive ammunition magazines off our streets, because these police chiefs, they're tired of seeing their guys and gals being outgunned. each of these proposals deserves a vote in congress.
10:11 pm
now, if you want to vote no, that's your choice. but these proposals deserve a vote. because in the two months since newtown, more than 1,000 birthdays, graduations, anniversaries have been stolen from our lives by a bullet from a gun. more than 1,000. one of those we lost was a young girl named hadiya pendelton. she was 15 years old. she loved fig newtons and lip gloss. she was a majorette. she was so good to her friends, they all thought they were her best friend. just three weeks ago, she was
10:12 pm
here in washington. with her classmates. performing for her country at my inauguration. and a week later, she was shot and killed in a chicago park after school. just a mile away from my house. hadiya's parents, nate and cleo, are in this chamber tonight, along with more than two dozen americans whose lives have been torn apart by gun violence. they deserve a vote. they deserve a vote. they deserve a vote. gabby giffords deserves a vote. the families of newtown deserve
10:13 pm
a vote. the families of aurora deserve a vote. the families of oak creek and tucson and blacksburg and the countless other communities ripped open by gun violence, they deserve a simple vote. they deserve a simple vote. our actions will not prevent every senselesses act of violence in this country. in fact, no laws, no initiatives, no administrative acts, will perfectly solve all of the challenges i've outlined tonight. but we were never sent here to be perfect. we were sent here to make what difference we can. to secure this nation.
10:14 pm
expand opportunity. uphold our ideals through the hard, often-frustrating but absolutely necessary work of self government. we were sent here to look out for our fellow americans. the same way they look out for one another. every single day. usually without fanfare. all across this country. we should follow their example. we should follow the example of a new york city nurse named menchu sanchez. when hurricane sandy plunged her hospital into darkness, she wasn't thinking about how her own home was faring. her mind was on the 20 precious newborns in her care and the rescue plan she devised that kept them all safe. we should follow the example of a north miami woman named
10:15 pm
desaline victor. when she arrived at her polling place, she was told her wait to vote might be six hours. and as time ticked by, her concern was not with her tired body or aching feet, but whether folks like her would get to have their say. hour after hour, a throng of people stayed in line to support her, because desaline is 102 years old, and they erupted in cheers when she finally put on a sticker that read "i voted."
10:16 pm
we should follow the example of a police officer named brian murphy. when a gunman opened fire on a sikh temple in wisconsin. brian was the first to arrive, and he did not consider his own safety. he fought back until help arrived. and ordered his fellow officers to protect the safety of the fellow americans worshipping inside. even as he lay bleeding from 12 bullet wounds. and when asked how he did that, brian said, "that's just the way we're made." that's just the way we're made. we may do different jobs, and where different uniforms, and hold different views than the person beside us. but as americans, we all share the same proud title. we are citizens.
10:17 pm
it's a word that doesn't just describe our nationality or legal status. it describes the way we're made. it describes what we believe. it captures the enduring idea that this country only works when we accept certain obligations to one another, and of future generations. but our rights are wrapped up in the rights of others. and that well into our third century as a nation, it remains the task of us all. as citizens of these united states to be the authors of the next great chapter of our american story. thank you. god bless you. and god bless these united states of america. >> that is the president of the united states, the state of the union address for 2013, and what
10:18 pm
was a workhorse of a speech for a large section until the part about guns toward the end in which -- which aroused a lot of emotion in the chamber, something that some of the more pedestrian concerns regarding manufacturing, climate change, did not. john, take-aways. >> in answer to the question you posed at the beginning of the show, what kind of an attitude was the president going to take, he was not -- he was not snarky in his tone, but he was throughout this speech trying to put pressure on republicans to oppose him on issues where he thinks he's in sync with the american people. so he opened the speech with an indication for deficit reduction. said i'm going to support defic deficit reduction, willing to cut medicare but then went after initiative after initiative. not big expensive initiatives, but ones designed to put republicans on the defensive and defy them to oppose him on
10:19 pm
strengthening education. manufacturing incentives. the kind of tax reform that he's in favor. the kind of trade initiatives he's in favor. the minimum wage. that's probably the biggest s g singlel , most consequential. to raise from $7.25 to $9, would take it to the real wage level it stood at the beginning of the reagan administration and the trade initiative, the transatlantic partnership to match the transpacific partnership. >> did the order in which those things came, saving guns and voting rights toward the end, does that give a clue as to his priorities in pursuing these different parts of his agenda? >> i don't think so. i think that was about building an emotional momentum toward the end of the speech. and you saw the emotion in the crowd when he invoked gabby giffords, when he invoked the children of newtown, when he invoked that young woman that performed in his inauguration, young girl, just three weeks ago and then was gunned down in a
10:20 pm
park in chicago. and then the case of desaline victor who waited in line for six hours, i saw her and spoke with her briefly as she was arriving and quite an impressive woman for 102 years old to make her way for this speech. eamon, how did it feel on the hill, and what are you seeing as members begin streaming out of the chamber? >> reporter: yeah, that's right. they are streaming out. this room here, statuteary hall is filling up, they're finding local television networks and trying to get on television. in fact, coming through here on our live shot as i talk to you. a lot here in this speech for business people in particular. you mentioned the $9 an hour minimum wage. another thing to think about, an executive order on cyber espionage, something we expected to hear from the president, we did hear, he signed that executive order and that's something that's going to be
10:21 pm
controversial among businesses. we know, for example, that the chamber of commerce has told us as early as yesterday, they don't like that idea. they don't like what they see as new relying regulations and obligations coming from the white house in this executive order. that's something else here for businesses to digest as we try to get our arms around a threat that really affects the entire economy, guys. >> want to bring in carley, cnbc contributor and former republican senate candidate and dean peaker, co director for economic and policy research and cnbc's larry kudlow. carley, are you there? >> i am, yes. good evening. >> let me just ask you about that minimum wage proposal. i was at a briefing with officials today and one of the economic officials said big business tends not to mind this proposal. you get a lot of resistance from small business, restaurants. some in the service industry. as a republican and as a business person, what's your reaction to the president's call
10:22 pm
for that minimum wage at $9 an hour? >> i think you're absolutely right. it is the little guys who are going to be hurt most. and i also think the president's appeal was incomplete. he made a very powerful, emotional appeal about the family of four who can't make a living on the minimum wage. but what, of course, he neglected to say, every time we raise the minimum wage, the youth unemployment rate also rises, because people feel they're not in a position to hire part-time people or give people their first jobs. so there are unintended and negative consequences to this. and he doesn't talk about those. so i think it was a powerful appeal, but economically, the evidence on how much good an increase in the minimum wage does is very much more mixed. >> dean baker, let me ask you. unintended consequences, blowback in terms of lost jobs,
10:23 pm
and will it fly? >> in terms of the blowback, this is heavily researched and the -- realistically, not there. a lot of people vote for it. it's not there. you're putting a lot of money in people's pockets. it's important to understand how modest this is. a lot of people were hoping for a $10 number. we're going to get to $9 in three years, assuming it goes through. not a given, but let's assume it goes through. we're still below where we were in 1968, which is kind of an amazing thing. productivity has doubled in that period. and we used to actually keep the minimum wage rising in step with productivity f. we had continued to do that, we would be at $16.50 an hour today. and '69, '68 was not bad times. >> no shutters going through the walls of walmart or mcdonald's? >> this speech was not a growth speech, period, end of sentence.
10:24 pm
the way to growth is not to raise minimum wage. >> manufacturing hubs -- >> yeah -- >> transatlantic partnership? >> it's so interesting. we don't need a transatlantic partnership. i don't know what he's talking about. i've never seen so much intervention. manufacturing, housing, education, infrastructure, climate change. government intervention. government intervention. guy never heard of the free market. he doesn't want to sequester but does want to raise taxes. he's not only going to not repatriate taxes, he wants to penalize taxes. the only thing that had any possibility at all, i had to flesh it out, he had some good things to say about immigration and that could be a pro-growth thing, particularly immigration for the brainiacs, as well as a better legal process for the low-skilled. the rest of this speech unprecedented government intervention. and we don't know the cost of this stuff. he says it's not going to cost a dime. i don't even remotely believe
10:25 pm
that. >> speaking of immigration, we are awaiting the republican response from senator rubio. carley, on larry's point, i wonder if you were taken aback when the president of the united states wades into the debate other global warming, mentioning the number of summers that have had record temperatures. you must have heard the environmentalists applauding that line. >> yes, first let me say, i liked what he had to say about immigration reform, because i think he basically supported the gang of eight proposal and that's a delicately shaped compromise that i think actually might pass. so i found that actually helpful. i thought it was helpful he put forward some real ideas about medicare reform. it might break a logjam, maybe. but climate change, of course, what he didn't say is what scientists also agree on. and what scientists agree on is that no nation acting alone can make any measurable improvement in climate change. in fact, it will require a global response sustained over many decades and costing
10:26 pm
trillions upon trillions of dollars. we ought to follow china's lead here. china is both investing in clean technologies and also burning coal. and when he made that threatening comment about if congress doesn't pass a bill that addresses this, i'm going to issue executive orders, i think that was something that really concerned me, and i think will concern a great deal of the business community, and americans. because it means ultimately, i think, that all his talk about an all of the above strategy is going to turn into more punishment on our most -- >> hold on, larry. we're going back to statutory hall where we're with eamon jafrs. i'm curious to see whether congressman garrett thinks this has a chance of flying in the house. >> a little chaotic, really crowded. congressman garrett is joining us now. and congressman, let me ask the question john harwood just put
10:27 pm
to me. what do you think of the minimum wage increase. what's your reaction to what the president had to say tonight? >> my reaction is we've heard a lot of this in the past. i could be optimistic if this was the first time the president said it, but i've heard it year in, year out. what we're really looking for is a pro growth administration to, get rid of some of the regulation, get my constituents back in the work force again and better paying jobs. you didn't hear any details, you heard the 30,000 foot rhetoric level but no true policies that will implement the pro growth economy we need in this country. >> what was the feeling inside the room? a lot of it was workman like through the middle and then came to an emotional ending. what was your take as you were listening? >> yeah. maybe as i said before, a little bit of frustration with it. we all want to have that aspect of reaching across the aisle and working through these issues. we're on the same page. we want to get the economy back again. we want to get jobs created, we want the pro growth. but when the president just gives us the same points he has in the past, you know, and 2010
10:28 pm
said he's going to pivot to growth, 2011, to job creation, he's pivoted so many times. so there is a sense of frustration. we're not going to get anything different out of this administration, we're going to see where we're going to be after the last four years as we were the first four years and that was less jobs now than when he came into office. >> what would you have liked to have heard you didn't hear tonight? >> he talked about regulation, he wants to cut the red tape. i'm on board with that, but his administration passed dodd/frank, his administration passed energy regulations coming out of the epa that are going to suppress on public lands, as well. i would like more specifics on how you actually get a growing, more prosperous economy with less red tape and more details as opposed to the rhetoric we heard in the past. >> thank you for joining us. guys, back to you. we have a number of other members of congress coming over to our position here. but it is very chaotic here, very crowded. a lot of people have a lot to say about this speech tonight.
10:29 pm
back to you. >> thanks. we're getting close to marco rubio's republican response. let me ask quickly about larry's complaint that it's one government intervention after the other. how do you see it? >> well, i think these are mostly small-bore, symbolic things, the things president clinton used to do. when you talk about big government, we could use big government spending. we lost a huge amount of demand when the housing double collapsed. i don't know any business person anywhere who invests just because you love him. they have to see the market. it's not there. >> i was keeping track of the number of companies he mentioned. caterpillar on "squawk" tom. apple, ford, see men's. but also no mention of small business. >> look, i'm happy those companies are coming back home. okay? i want to see what that means coming back home. let's take apple as an example. they may open up selling at home, both their operations overseas. the point i'm making is, the government doesn't know which
10:30 pm
industries we should be subsidizing. this whole idea of let's bring manufacturing home. i don't know that manufacturing is the way to go in the next 50 years. i don't know if manufacturing is the next google. i don't know if manufacturing is the next apple. the government shouldn't be picking winners and losers. the government should create a nice level playing field. he mentioned tax simplification. but that's all he said. what everybody wants. every ceo, every commission. his own competitiveness council. the thing jeff immelt was on. they all said give us corporate tax reform. they all said repatriate foreign owners. he still hasn't done it. it's not a matter of emotion, it's profits, dollars and cents after tax. that's the way business is conducted. and secondly, government cannot pick winners and losers. it's always tried and always fails. and this is just a liberal, progressive agenda. i'm sorry to say. i love solar.
10:31 pm
i love the solar thing. by the way, i think his data points are right. i would like to check these data points. there is a lot of dissent about that. >> a few seconds here until the republican response from senator marco rubirubio, the son of cub immigrants, a senator from florida. here is the republican response. >> good evening. i'm marco rubio. i'm blessed to represent florida and the united states senate. let me begin by congratulating president obama on the start of his second term. tonight i have the honor of responding to his state of the union address on behalf of my fellow republicans. and i'm especially honored to address the brave men and women serving in the armed forces and diplomatic posts around the world. you may be thousands of miles away, but you are always in our prayers. the state of the union address is always a reminder of how unique america is. see, for much of human history,
10:32 pm
most people were trapped in stagnant societies, where a tiny minority always stayed on top and no one else had a chance. but america is exceptional, because we believe that every life at every stage is precious. and that every one, everywhere, has a got-given right to go as far as their talents and hard work will take them. like most americans, for me, this ideal is personal. my parents immigrated here in pursuit of the opportunity to improve their life. and to give their children the chance at an even better one. they made it to the middle class. my dad working as a bartender and my mother as a cashier and maid. i didn't inherit any money from them. but iin her tid something far better. the real opportunity to accomplish my dreams. this opportunity, to make it to the middle class or beyond, no matter where you start out in life, it isn't bestowed on us from washington. it comes from a vibrant, free economy, where people can risk their own money to open a business. and when they succeed, they hire
10:33 pm
more people, who in turn invest or spend their money they make, helping others start a business and create jobs. presidents in both parties, from john f. kennedy to ronald reagan, have known that our free enterprise economy is the source of our middle class prosperity. but president obama? he believes it's the cause of our problems. that the economic downturn happened because our government didn't tax enough, spend enough or control enough. and therefore, as you heard tonight, his solution to virtually every problem we face is for washington to tax more, borrow more and spend more. this idea that our problems were caused by a government that was too small is just not true. in fact, a major cause of our recent downturn was a housing crisis created by reckless government policies. and the idea that more taxes and more government spending is the best way to help hard-working, middle class taxpayers, that's an old idea that's failed every time it's been tried.
10:34 pm
more government isn't going to help you get ahead. it's going to hold you back. more government isn't going to create more opportunities. it's going to limit them. and more government isn't going to inspire new ideas, new businesses and new private sector jobs. it's going to create uncertainty. because more government breeds complicated rules and laws that small businesses can't afford to follow. because more government raises taxes on employers who then pass the costs on to their employees, through fewer hours, lower pay and layoffs. and because many government programs that claim to help the middle class often end up hurting them. for example, obamacare. it was supposed to help middle class americans afford health insurance. but now some people are losing the health insurance they were happy with. and because obamacare created expensive requirements for companies with more than 50 employees, now many of these companies aren't hiring. not only that, they're being forced to lay people off and switch from full-time employees to part-time workers.
10:35 pm
now, does this mean there's no role for government? of course not. it plays a crucial part in keeping us safe, in forcing rules and providing some security against the risks of modern life. but government's role is wisely limited by the constitution. and it can't play as essential a role when it ignores those limits. there are valid reasons to be concerned about the president's plan to grow our government. but any time anyone opposes the president's agenda, he and his allies usually respond by falsely attacking their motives. when we point out that no matter how many job-killing laws we pass, our government can't control the weather, he accuses us of wanting dirty water and dirty air. when we suggest we strengthen our safety net programs by giving states more flexibility to manage them, he accuses of us of wanting to leave the elderly and disabled to fend for themselves. and tonight criticized us for refusing to raise taxes to delay military cuts, cuts that were
10:36 pm
his idea in the first place. but his favorite attack of all is those of us who don't agree with him, that we only care about rich people. mr. president, i still live in the same working-class neighborhood i grew up in. my neighbors aren't millionaires. thera they're retirees who depend on social security and medicare. they have to get up early tomorrow morning to go to work and pay the bills. they're immigrants who came here because they were stuck in poverty in the countries where the government dominated the economy. the tax increases and the deficit spending you propose will hurt middle class families. it will cost them their raises. it will cost them their benefits. it may even cost some of them their jobs. and it will hurt seniors, because it does nothing to save medicare and social security. so mr. president, i don't oppose your plans because i want to protect the rich i oppose your plans because i want to protect my neighbors. hard-working, middle class americans who don't need us to come up with a plan to grow the government. they need a plan to grow the
10:37 pm
middle class. economic growth is the best way to help the middle class. unfortunately, our economy actually shrank during the last three months of 2012. but if we can get the economy to grow at just 4% a year, it would create middle class jobs, and it would reduce our deficits by almost $4 trillion over the next decade. tax increases can't do this. raising taxes won't create private sector jobs, and there is no realistic tax increase that could lower our deficits by almost $4 trillion. that's why i hope the president will abandon his obsession with raising taxes and instead work with us to achieve real growth in our economy. one of the best ways to encourage growth is through our energy industry. of course, solar and wind energy should be a part of our energy portfolio. but god also blessed america with abundant coal, oil and natural gas. instead of wasting more taxpayer money on so-called clean energy companies like solyndra, let's
10:38 pm
open up more federal lands for safe and responsible exploration. and let's reform our energy regulations so they're reasonable and based on common sense. if we can grow our economy industry, it will make us energy-independent. it will create middle class jobs, and it will help bring manufacturing back from places like china. simplifying our tax code will also help the middle class, because it will make it easier for small businesses to hire and grow. and we agree with the president. we should lower our corporate tax rate, which is one of the highest in the world. so that companies will start bringing their money and their jobs back here from overseas. we can also help grow our economy if we have a legal immigration system that allows us to attract and assimilate the world's best and brightest. we need a responsible permanent solution to the problem of those who are here illegally. but first, we must follow through on the broken promises past to secure our borders and enforce our laws. helping the middle class grow
10:39 pm
will also require an education system that gives people the success today's jobs entail and the knowledge that tomorrow's world will require. we need to incentivize local school districts to offer more advanced placement courses, and more vocational and career training. and we need to give all parents, especially the parents of children with special needs, the opportunity to send their children to the school of their choice. and because college tuition costs have grown so fast, we need to change the way we pay for higher education. i believe in federal financial aid. i couldn't have gone to college without it. but it's not just about spending more money. it's also about strengthening and modernizing them. the 21st century work force should not be forced to accept 20th century education solutions. today's students aren't only 18-year-olds. they're returning veterans, single parents who decide to get the education they need, to earn a decent wage. and their workers who have lost jobs that are never coming back and need to be retrained.
10:40 pm
we need student aid that does not discriminate against programs that nontraditional students rely on, like online courses or degree programs that give you credit for work experience. when i finished school, i owed over $100,000 in student loans, a debt i paid off just a few months ago. today, many graduates face massive student loans. we must give students more information on the costs and benefits of the student loans they're taking out. all of these measures are key to helping grow the economy. we won't be able to sustain a vibrant middle class unless we solve our debt problem. every dollar our government borrows is money that isn't being invested to create jobs and the uncertainty created by the debt is one reason many businesses aren't hiring. the president loves to blame the debt on president bush, but president obama has created more debt in four years than his predecessor did in eight. the real cause of our debt is that our government has been spending $1 trillion more than
10:41 pm
it takes in every year. that's why we need a balanced budget amendment. the biggest obstacle to balancing the budget are programs where spending is already locked in. one of these programs is medicare. it's especially important to me. it provided my father the care he needed to battle cancer, and ultimately to die with dignity. and it pays for the care my mother receives right now. i would never support any changes to medicare that would hurt seniors like my mother. but anyone who is in favor of leaving medicare exactly the way it is right now is in favor of bankrupting it. republicans have offered a detailed and credible plan that helps save medicare without hurting today's retirees. instead of playing politics with medicare, when is the president going to offer his detailed plan to save it? tonight would have been a good time for him to do it. of course, we face other challenges as well. we were all heartbroken by the recent tragedy in connecticut. we must effectively deal with the rise of violence in our
10:42 pm
country. but unconstitutionally undermining the second amendment rights of law-abiding americans is not the way to do it. on foreign policy, america continues to be indispensable to the glow of global liberty. property and safeguarding human rights. the world is a better place when america is the strongest nation on earth. but we can't remain powerful if we don't have an economy that can afford it. in the short time i've been here in washington, nothing has frustrated me more than false choices like the one the president laid out tonight. the choice isn't just between big government or big business. what we need is an accountable, efficient and effective government that allows small and new businesses to create more middle class jobs. we don't have to raise taxes to avoid the president's devastating cuts to our military. republicans have passed a plan that replaces these cuts with responsible spending reforms. in order to balance our budget, the choice doesn't have to be either higher taxes or dramatic benefit cuts for those in need.
10:43 pm
instead we should grow our economy so we can create new taxpayers, not new taxes. and so our government can afford to help those who truly cannot help themselves. and the truth is, every problem can't be solved by the government. many are caused by the moral breakdown in our society. and the answer to these challenges lie primarily in our families, and our faith. not our politicians. despite our differences, i know that both republicans and democrats love america. i pray we can come together to solve our problems. because the choices before us could not be more important. if we can get our economy healthy again, our children will be the most prosperous americans ever. and if we do not, we will forever be known as the generation responsible for america's decline. at a time when one showdown after another ends in short term deals that do little or nothing about our real problems, some are starting to believe our government leaders just can't or won't make the right choices
10:44 pm
anymore. but our strength has never come from the white house or the capit capitol. it's always come from our people. a people united by the american idea that if you have a dream and you're willing to work hard, nothing should be impossible. americans have always celebrated and been inspired by those who succeed. but it's the dreams of those who are still trying to make it that sets our nation apart. tonight, all across this land, parents will hold their newborn children in their arms for the first time. many of these parents, for many of these parents, life has not gone the way they had planned. maybe they were born into circumstances they found difficult to escape. maybe they've made some mistakes along the way. maybe their young mother is all along, the father long gone. but tonight when they look into the eyes of their child for the first time, their lives will change forever. because in those eyes, they will see what my parents saw in me.
10:45 pm
and what your parents saw in you. they will see all the hopes and dreams they once had for themselves. this dream of a better life for their children, it's the hope of parents everywhere. politicians here and throughout the world have long promised that more government can make those dreams come true. but we americans have always known better. from our earliest days, we embraced economic liberty, and because we did, america remains one of the few places on earth where dreams like these even have a chance. each time our nation has faced great challenges, what has kept us together was our shared hope for a better life. now, let that hope bring us together again. to solve the challenges of our time and write the next chapter in the amazing story of the greatest nation man has ever known. thank you for listening. may god bless all of you. may god bless our president, and
10:46 pm
may god continue to bless the united states of america. >> that is senator marco rubio of florida, and the republican response. joining us here on-set, sara fakingen, partner at ddc advocacy, msnbc. and bob shrum, "daily beast" columnist, as well. and john harwood, following the president is a tough mission. as some of these responses often show. >> it was a tough mission. marco rubio clearly is a gifted orator. he presents well. i think he had an unfortunate moment a couple of times, i don't know if the light was too strong on him and his throat was getting dry, but wiping his face and then when he broke contact with the audience and leaned down and picked up that water bottle, i'm not sure that was effective. bob, let me ask you. i've never seen that in a speech by a national politician. what did you think of rubio's performance in that moment? >> well, it was the first time, and you're right about this, by
10:47 pm
the way. doing the response is hard. i've worked on writing state of the union addresses and the responses. the response is tougher. i think that it was a pretty good speech. and i think it was also rubio's announcement of candidacy in 2016. i was struck by the fact that he talked about obamacare, solyndra, for heaven's sake. even the way he phrased immigration reform wasn't designed to appeal to a general election audience. it was designed to apiece the people in the republican party who were worried about that issue. we have to first do border security. he hit that so hard. what he was really doing, i think, was going over the hot button issues that matter to the republican core. those issues were adjudicateded in 2012, and much to say, larry kudlow's distress, it didn't work out too well for the republicans. i think when the president says we need a government that works for the many, not just the few, he is striking a responsive cord with the country. and, in fact, the polling shows overwhelmingly, people agree with him on almost all of these
10:48 pm
issues. >> sara? >> well, i think that the end of the speech was much stronger than the beginning. i thought the ending should have been up front. and it would have set a very different tone for how i think people are going to remember his reaction tonight. that said, when you think about the two things he needed to accomplish tonight, which was to deliver an effective critique of president obama's agenda, and start to offer a hopeful vision for the republican party moving forward, i think he accomplished it. >> dean? your thoughts on the response and then we'll circle back to the state of the union itself. >> i can't avoid thinking as an economist, so numbers jump out at me there. he's talking about president obama like he's running north korea. he thinks the free enterprise system is the cause -- that's not the speech i heard. i loved how he said if we just had 4% growth a year, we would create 4 million -- well, we haven't had 4% growth since president clinton was in the white house. >> he references a negative
10:49 pm
q4 gdp print. >> yeah, so hard to take seriously. >> he also did, i thought, make the point that the president had a big opportunity tonight to talk about specific entitlement reforms in medicare and he didn't take it. and real leadership in the white house, i think, would have ton that. >> one of the things, he has produced the projected shortfall in medicare by 75%. you could say 100%. so to act like he has been going to sleep -- >> but he hasn't offered any specific proposals on how to change and reform the system. >> i will say, sara, carley gave him credit for some of the things he said on medicare as being specific. let's go back to statutory hall, where we're joined by joe manchin and kansas representative. senator, you've been telling congress to stop fighting and start fixing. did you hear that to be able to? >> i did. i was pleased with the tone. i thought it was a bipartisan tone that put everyone together
10:50 pm
working for the betterment of our country, and fulfilling our commitment to those who sacrifice for all of us. i thought the tone was very good. we've got to make sure we follow through on it now. >> lynn jenkins, what did you think of the litany of government interventions, though small, and not all that inexpensive that the president is proposing, but nevertheless, marco rubio was criticizing those. do you agree with rubio? >> i agreed with the president on his goals of getting hard-working americans back to work. getting the economy stoked, all the way addressing the issue of the debt and the deficits. i just happen to disagree with him on how we go about doing that. but that's what's nice about having folks across the rotunda in senator manchin, as folks were building some relationships with, some trust through the problem-solvers' organization. and we look forward to working together, because i think that folks like us can come together
10:51 pm
and find the solutions this nation needs. >> senator, i'd love to get your thoughts on his energy policy. stuff -- no carbon tax initiatives. he didn't really hit coal too hard tonight. but he did seem to double down on solar and renewables. i just wonder about your response to that coming from a state where coal is obviously very important. >> well, i was disappointed. i was very disappointed. and basically, we're talking about an all-in energy policy. that means we should be doing everything we can in every state to be totally energy-independent. using the resources that we have. coal makes up 35% of the energy portfolio that we use in this nation. and not to mention, talk about, trying to use it in a cleaner fashion with the partnership of the federal government finding new technology way of doing it. you know, we burn less than 1/8 of the world consumption of coal in america. it would be great if we were able to find the technology to help clean up all of the environment. all over the world.
10:52 pm
and i was very disappointed. >> senator? >> we're going to work hard. >> senator, it sounds like you're expecting that the executive order as the president promised are not going to be to your liking. what do you expect him to do? what do you expect the epa to do over the next few months? >> i'm very much concerned on expanding executive orders from the standpoint -- i think we should practice what our founding fathers set up in motion and go through this process that we're prepared to do both in the senate and house side. here we are as bipartisan, lynn and myself, no labels, speaking of problem-solvers, we can sit down and work this out and come to an agreement. and we're hopeful the leadership will allow us to do that. >> some of these manufacturing hubs, congresswoman, i wonder if you think those will really bear any fruit. there was a point where youngstown was trending on twitter. the president joked about elected officials going to some of these ribbon-cuttings.
10:53 pm
but is there anything to that beyond the cosmetics? >> well, again, i think there are just some fundamental differences between the president and myself. i don't think the genus of america lies in washington. i don't think all of the problems can be solved in washington. i believe the genius of america is in places like west virginia and kansas and that big government, just taking more of your money, and then thinking we all can solve the problems, that's not the way that i view the world. and so i'm probably not going to agree with the president on that. >> senator -- go ahead. finish it off. efforts ju efforts. >> just on the skill sets. we've got to have the people with the skill sets to meet the demands we have in our nation and for the growing world economy. with that being said, it's a shame our school systems have let us down. we've got to make sure we're mainstreaming these people. we have 3 million jobs, i'm understanding, with no skill sets to fill. so we've got to do something. so i want to see the success ratio they've had, and see if
10:54 pm
it's something we should expand upon. i feel very comfortable about looking at that and seeing if it's something we could do. we're trying in west virginia on our skill sets, technical skill sets, and i think it's something that could work, and we should be looking at that. >> democratic senator joe manchin, republican congresswoman, lynn jenkins of kansas, both problem solvers, thanks for being with us. final thoughts tonight from sa sara fagen, carley, i'll begin with you. not to lean on twitter too much as a barometer, but the most tweeted moment tonight did come at 9:52 eastern time and that was regarding the minimum wage. is that going to be the lasting legacy of this speech? >> well, i certainly hope not. i think there are much larger issues, frankly, that were talked about, both by the president and by senator rubio. and, you know, one of your reporters commented that president obama was basically laying out his case for all the
10:55 pm
things that he's going to push for, and blame republicans for when they don't happen. i thought one of the most effective moments of marco rubio's speech was when he basically called the president out for attacking people's motives when they disagree with him. and for presenting the american people with false choices. i think both of those things are very favored techniques by this president. they work very effectively, unfortunately, some of the time. and so i think if president obama started with a bipartisan tone, but as well reminded republicans what he's going to pressure them on, i think likewise senator rubio started and ended with a bipartisan tone, but reminded the president that republicans will call him on his technique of constantly questioning their motives, as opposed to looking at their positions and presenting the american people with false choices. i think both the president and the senator are right. this is a critical time. we need to grow our economy.
10:56 pm
we have very important problems ahead of us that will require a bipartisan solution. and let us hope that everyone is up to the challenge. >> bob shrum, do you think minimum wage as somebody who has worked on that in the past, has any chance of flying with this congress and what do you think is the biggest take-away from this speech tonight? >> well, i don't know if it will fly with this congress. it will fly with the american people. i understand it isn't important to carley, it isn't important to me, but it's important to millions out there who work very hard and don't earn enough to get above the poverty level. >> it won't help us create jobs. that's the problem. >> you know, you guys have the same -- carley, i didn't interrupt you. and you're not ceo here. >> but i didn't question your motives. >> i'm not questioning your motives. i'm saying, i understand it doesn't matter to you. and by the way, the president doesn't question people's motives. marco rubio was wrong about that. what the president says is, your
10:57 pm
medicare plan would lead to its privatization and hurt seniors. that's not questioning a motive. that's debating a policy. one other thing, if i can get out of this argument. one other thing, the specifics that the president went through, what i learned in the clinton years, when i helped the president on occasion with state of the unions, were the comment at a timers would say, boy, those lists of specifics, they don't resonate with people. that wasn't emotional enough. and when you got back the polling data, you found out that people really cared about them, and responded to them. i thought it was a very effective speech. >> before we go, dean baker, what's going to be the talk at the water cooler where you are tomorrow? >> the minimum wage. it's something, not as much as i would like to see, but that's real to people. >> sara, you would agree? >> i think the talk is going to be immigration. that's the one thing out of this speech that is likely to be accomplished. >> and carl, i think we have to keep in mind, the underlying philosophy of the president's speech. as dean indicated, a lot of these proposals are recycled from earlier speeches, last
10:58 pm
year's speech. but the president's belief is that that's what i campaigned on, i have a mandate from the american people and i'm going to try to make it happen. >> is it he transition now to a campaign-like exercise where this has continued to be supported in public? >> he begins that campaign tomorrow morning. we're going to have to leave it there. thanks to our guests tonight. you want to tune into cnbc tomorrow for more reaction to the president's state of the union address, beginning at 6:00 a.m. on "squawk box." with aetna ceo mark bert lienee, brian roberts and chairman of the equity group investments. >> "squawk on the street" later on, jim senegal, florida congressman and chair of the dnc, debbie wasserman schultz and john barrasso. we'll see you in the morning. to compete on the global stage. what we need are people prepared for the careers of our new economy. by 2025 we could have 20 million jobs without enough college graduates to fill them. that's why at devry university, we're teaming up with companies like cisco to help make sure everyone is ready with the know-how we need
10:59 pm
for a new tomorrow. [ male announcer ] make sure america's ready. make sure you're ready. at devry.edu/knowhow. ♪ at devry.edu/knowhow. try running four.ning a restaurant is hard, fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase.

tv
State of the Union 2013
CNBC February 12, 2013 9:00pm-11:00pm EST

News/Business. The president's speech describes the current condition of the country to the American people. New.

TOPIC FREQUENCY Us 34, Rubio 10, Marco Rubio 9, Washington 6, China 4, Florida 4, Afghanistan 4, John Harwood 3, John 3, Clinton 3, Larry Kudlow 3, United States 3, United 3, Kansas 3, Carley 3, North Korea 3, John F. Kennedy 2, Caterpillar 2, Bob Shrum 2, Apple 2
Network CNBC
Duration 02:00:00
Scanned in San Francisco, CA, USA
Source Comcast Cable
Tuner Virtual Ch. 58 (CNBC)
Video Codec mpeg2video
Audio Cocec ac3
Pixel width 704
Pixel height 480


disc Borrow a DVD of this show
info Stream Only
Uploaded by
TV Archive
on 2/13/2013
Views
148